Financial Performance - The group reported a revenue of approximately HKD 245.0 million for the six months ended September 30, 2023, a decrease of about HKD 21.9 million or 8.2% compared to HKD 266.9 million for the same period in 2022[12]. - The total revenue for the six months ended September 30, 2023, was HKD 251.1 million, a decrease from HKD 273.0 million for the same period in 2022[41]. - Revenue for the six months ended September 30, 2023, was HKD 251,115,000, a decrease of 8.0% from HKD 273,012,000 in the same period of 2022[62]. - Income from foundation and site preparation engineering was HKD 244,994,000, down 8.2% from HKD 266,954,000 year-on-year[62]. - The company's profit attributable to owners was approximately HKD 2.1 million for the reporting period, a decrease from HKD 8.9 million for the six months ended September 30, 2022, primarily due to the absence of HKD 6.0 million in employment support scheme subsidies and fewer large foundation and site leveling projects completed[19]. - The group reported a profit attributable to owners of the company of HKD 2,102,000, a decrease of 76.4% from HKD 8,907,000 in the same period last year[72]. - Basic and diluted earnings per share were HKD 0.00225, down from HKD 0.00953 in the previous year[72]. - The basic and diluted earnings per share for the period were 0.2 cents, compared to 1.0 cent for the same period in 2022[41]. Project and Contract Activity - The group completed 16 projects with a total original contract value of approximately HKD 428.8 million during the reporting period, and currently has 25 projects on hand as of September 30, 2023[9]. - The group received 12 new contracts during the reporting period, with an original total contract value of approximately HKD 141.4 million[9]. Cost and Expense Management - The gross profit for the reporting period was approximately HKD 17.9 million, a decrease of about HKD 2.0 million or 10.1% from HKD 19.9 million for the same period in 2022, resulting in a gross margin of approximately 7.1%[13]. - Administrative expenses for the reporting period were approximately HKD 15.6 million, a decrease of about HKD 0.9 million or 5.5% from HKD 16.5 million for the same period in 2022[15]. - Financial costs decreased to approximately HKD 0.4 million, a reduction of about HKD 0.4 million or 50.0% compared to HKD 0.8 million for the same period in 2022[17]. - Other income for the reporting period was approximately HKD 1.0 thousand, a significant decrease of about HKD 6.3 million or 100.0% compared to HKD 6.3 million for the same period in 2022[14]. - The group is focused on strict cost control measures and improving workflow efficiency in response to market competition and economic uncertainties in Hong Kong[8]. - The group aims to enhance its competitive advantage by closely monitoring service costs and market dynamics while providing quality services to clients[7]. Cash Flow and Financial Position - The total amount of unbilled revenue as of September 30, 2023, was approximately HKD 401.5 million, down from HKD 479.9 million as of September 30, 2022[9]. - As of September 30, 2023, the total assets of the group were approximately HKD 244.1 million, an increase from HKD 234.2 million as of March 31, 2023, with current assets amounting to approximately HKD 197.4 million[21]. - The total liabilities of the group as of September 30, 2023, were approximately HKD 114.9 million, up from HKD 107.1 million as of March 31, 2023, with current liabilities at approximately HKD 103.6 million[21]. - The group's cash and bank balances totaled approximately HKD 54.9 million as of September 30, 2023, compared to HKD 45.6 million as of March 31, 2023, reflecting a net cash inflow of approximately HKD 9.3 million from operating, investing, and financing activities[22]. - Operating cash flow for the six months ended September 30, 2023, was HKD 15,534,000, a decrease of 40.8% compared to HKD 26,255,000 in the same period of 2022[47]. - Cash and cash equivalents increased by HKD 9,295,000, reaching HKD 54,879,000 as of September 30, 2023, compared to HKD 47,944,000 in the prior year[47]. - The company repaid lease liabilities amounting to HKD (4,784,000), down from HKD (6,597,000) in the previous year, reflecting improved cash management[47]. - The company did not incur any new bank borrowings during the six months ended September 30, 2023, compared to HKD 3,000,000 in the same period of 2022[47]. - The company’s cash flow from operating activities was impacted by a decrease in operating income, which fell to HKD 15,406,000 from HKD 26,026,000 year-over-year[47]. Asset Management and Investments - The group invested approximately HKD 5.3 million during the reporting period in machinery, equipment, vehicles, and computer equipment, down from HKD 18.2 million as of March 31, 2023[28]. - The group had capital commitments of approximately HKD 15.2 million for the acquisition of machinery and equipment not provided for in the financial statements as of September 30, 2023[29]. - The group recognized impairment losses of HKD 613,000 on trade receivables and contract assets during the period[70]. - The group incurred a total depreciation expense of HKD 9,111,000 for machinery and right-of-use assets, compared to HKD 9,855,000 in the previous year[70]. - The group purchased machinery and equipment at a cost of approximately HKD 5,281,000, down from HKD 7,747,000 in the same period last year[76]. - For the six months ended September 30, 2023, the depreciation of right-of-use assets amounted to HKD 3,548,000, compared to HKD 3,304,000 for the same period in 2022, representing an increase of approximately 7.4%[80]. - Total cash outflow for leases during the six months was approximately HKD 5,215,000, down from HKD 7,385,000 in the same period of 2022, indicating a decrease of about 29.5%[81]. Shareholder and Governance Information - The board has resolved not to recommend any interim dividend for the six months ended September 30, 2023[20]. - The group did not declare or propose any dividends for the six months ended September 30, 2023, consistent with the previous year[71]. - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange rules during the reporting period[104]. - The company’s governance structure includes Mr. Li Chok Kam serving as both Chairman and CEO, which is noted as a deviation from the corporate governance code[104]. - The major shareholder, 彩暉環球, also holds 484,998,000 shares, equating to 51.94% of the issued shares, and is fully owned by Mr. Li Chok Kam[110]. - 得意環球有限公司 holds 190,002,000 shares, representing 20.35% of the issued shares, with Ms. Ren Yuan as a controlling shareholder[110]. - The company has not granted any share options since the adoption of the share option plan on September 21, 2017, which is set to expire on October 19, 2027[101]. - There were no share options granted or exercised during the reporting period, indicating a potential focus on other forms of employee incentives[101]. - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[116]. - As of September 30, 2023, there are no known changes in director information that require disclosure under the Listing Rules[117]. Legal and Compliance - As of September 30, 2023, the company has no provisions made for ongoing litigation and potential claims, as it is believed they will not have a significant impact on the financial statements[20]. - The Audit Committee, established on September 21, 2017, reviewed the unaudited condensed consolidated financial statements for the reporting period[119]. - There have been no significant subsequent events after the reporting period[118].
荣智控股(06080) - 2024 - 中期财报